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TYPES OF ADVERTISEMENT / classification of ad1. Based on geographical coverage.

Global advertising National advertising Regional advertising Local advertising

2. Based on target group Consumer advertising Industrial advertising Trade advertising Retail advertising Professional advertising Corporate advertising

3. Based on demand Primary (product) demand advertising Selective (brand) demand advertising

4. Advertising of services / non product advertising Idea advertising Service advertising Financial advertising Personal advertising

5. Other kinds Public service advertising- Advocacy advertising Comparative advertising- this ad presents

comparision of brand with its substitute.

Competitive advertising Advertorial advertising Surrogate advertising Co-operative advertising- when manufacturer,

wholesalers and or retailsers jointly sponsor andshare the expenditure advertising it takes the formof cooperative advertising. Such advertising wouldconvey the names of all the parties involved. Fromthe point of view of the customers this is beneficialas they could get the articles, directly from theauthorized outlets.

THE COMMUNICATION PROCESS:

Meaning and marketing communication process.

COMMUNICATION MODELs

1. AIDA Model:A-attracting attention

I-arousing Interest

D-building Desire

A-obtaining Action.

2. Lavidge and Steiner model/Hierarchy of effectsmodel.

Awareness-knowledge-liking-preference-

conviction-purchase

3. Innovation adoption modelAwareness-interest-evaluation-trail-adoption

4. Information processing modelPresentation-attention-comprehension-yeilding-

retention-behavior

5. Operational modelCognitive activity-affective activity-behavioral stage

DAGMAR-Defining Advertising Goals for Measured

Advertising Results.

-was the study of ANA [association of NationalAdvertisers] Russell Colley (1961) developed a model ofDAGMARfor setting advertising objectives and measuringthe results.

Russel H Colley defined an advertising objective

as a specific communication task, to be accomplished

among a defined audience to a given degree in given periodof time.

DAGMAR model suggests that the ultimateobjective of advertising must carry a consumer through fourlevels of understanding: from unawareness toAwarenessthe consumer must first be aware of a brandor company Comprehensionhe or she must have acomprehension of what the product is and its benefits;Convictionhe or she must arrive at the mental dispositionor conviction to buys the brand; Actionfinally, he or she

actually buy that product.

Characteristics of Objectives -A major contribution

of DAGMAR was Colleys specification of what constitutes

a good objective. Four requirements or characteristics of

good objectives were noted

1. Concrete and measurablethe communications taskor objective should be a precise statement of whatappeal or message the advertiser wants to communicateto the target audience. Furthermore the specificationshould include a description of the measurementprocedure

2. Target audiencea key tenet to DAGMAR is that thetarget audience be well defined. For example if the

goal was to increase awareness, it is essential to knowthe target audience precisely. The benchmark measurecannot be developed without a specification of thetarget segment

3. Benchmark and degree of change soughtanotherimportant part of setting objectives is havingbenchmark measures to determine where the targetaudience stands at the beginning of the campaign withrespect to various communication response variablessuch as awareness, knowledge, attitudes, image, etc. Theobjectives should also specify how much change ormovement is being sought such as increase in

awareness levels, creation of favorable attitudes ornumber of consumers intending to purchase the brand,etc. a benchmark is also a prerequisite to the ultimatemeasurement of results, an essential part of anyplanning program and DAGMAR in particular.

4. Specified time perioda final characteristic of goodobjectives is the specification of the time period duringwhich the objective is to be accomplished, e.g.6months, 1 year etc. With a time period specified asurvey to generate a set if measures can be planned andanticipated.

5. Written Goal finally goals should be committed topaper. When the goals are clearly written, basicshortcomings and misunderstandings become exposedand it becomes easy to determine whether the goalcontains the crucial aspects of the DAGMARapproach.

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ADVERTISING BUDGET [M-MONEY]Not even the most productive cow can be milked withoutspending money

Advertising budget is an estimate of futureadvertising expenditure that will be used to implementmanagerial decisions to maintain or improve profit results.Factors influencing ad budget1. Stage in the product life cycle. New products

typically need large advertising budgets to buildawareness and to gain consumer trial. Mature brandsusually require lower budgets as a ratio to sales.

2. Market share. High-market-share brands usually needmore advertising spending as a percentage of sales thando low-share brands. Building the market or takingshare from competitors requires larger advertisingspending than does simply maintaining current share.

3. Competition and clutter. In a market with manycompetitors and high advertising spending, a brandmust advertise more heavily to be heard above thenoise in the market.

4. Advertising frequency. When many repetitions areneeded to present the brand's message to consumers,the advertising budget must be larger.

5. Product differentiation. A brand that closelyresembles other brands in its product class (coffee,laundry detergents, chewing gum, beer, soft drinks)requires heavy advertising to set it apart. When theproduct differs greatly from competitors, advertisingcan be used to point out the differences to consumers

6. The objectives to be attained.7. The coverage expectations8. The prevailing economic conditions.9. The size of the company10.The funds available.

.

METHODS OF ADVERTISING BUDGET

1. Affordable method-company decides to spend onpromotion what it can afford.

2. The percentage of sales method.Merits:

Its simple, It works on affordability It is consistent.

Demerits:

wrong stressing, [over/under spending] it is static in approach It ignores long range planning.

3. Competitive parity method- a firm decides hisadvertising budget on the basis of advertisingexpenditure incurred by rival firms.

4. Fixedsum- per unit method- specific amount perunit of sales [previous year sale]it cannot be applied

for small product like soap, pen, cigarettes etc

5. Objective and task method: the company sets itspromotion budget based on what it wants toaccomplish with promotion.

The method entails:(1) Defining specific objectives;(2) Determining the tasks needed to achieve theseobjectives; and(3) Estimating the costs of performing these tasks.The sum of these costs is the proposed promotionbudget.

This method has the advantage of requiringmanagement to spell out its assumptions about the

relationship between the amount spent, exposurelevels, trial rates and regular usage.